7 reasons why finding managers today is more difficult than yesterday 

 The executive talent market is going through a complex time. Many companies face greater difficulties in identifying and attracting the managers they need. But what are some of the reasons behind this phenomenon? 

1. Growing demand for specific technical skills 

The profile of the manager has changed (and will continue to change rapidly). Leadership and experience are not enough; Today, specific knowledge is required in aspects such as digital strategy, management of emerging technologies such as artificial intelligence and automation, or an advanced mastery of the use of data in decision-making. However, many traditional managers lack these competencies, which reduces the pool of candidates truly prepared to lead in the current context. According to a McKinsey study, 87% of companies say they face a digital skills deficit in their management teams. 

2. Generational transition 

The departure of the Baby-Boomer generation is accelerating the shortage of managers. 33% of managers in Europe are over 55 years old (according to a PwC report), and a large proportion are expected to retire in the next 5-10 years. This situation is generating a leadership gap, as the talent pipeline is not always sufficiently prepared to take over. According to an alarming report by Korn Ferry, by 2030 there will be a global talent deficit of 85 million highly skilled workers. 

3. Greater competition between companies 

Before, competition for talent was mainly within each sector. Today, sectors as different as technology, health or banking may be competing for the same profiles. Added to this is the appeal of startups, which offer challenging projects and greater flexibility, attracting talent that could have opted for a traditional corporate environment. According to LinkedIn, talent mobility between industries has increased by 25% in the last decade. 

4. Change in candidate expectations 

Executives’ priorities have also changed. They are now looking for a better work-life balance, as well as a sense of purpose in their work. This complicates wage and working conditions negotiations, causing many offers to be rejected despite their economic attractiveness. 

5. Push for Diversity and Inclusion (D&I) 

Companies are looking to increase the representation of women and other underrepresented groups on management committees, but the supply of diverse talent remains limited. This requires additional efforts in identifying and developing candidates, which lengthens and complicates selection processes. 

According to an ILO report, only 29% of senior management positions in the world are held by women, and significant growth is expected in the coming years. 

6. More uncertain and faster business environments 

Business cycles have shortened, and uncertainty is the new norm. It takes resilience, decision-making under pressure and constant adaptation to change, which is not obvious, and many people cannot (or do not want to) live under this constant pressure. 

7. Slower decision-making processes 

Organizations are less hierarchical than before, which means that many more people participate in selection processes than before. The need for consensus between different stakeholders delays decision-making, generating missed opportunities in a market where the best talent often receives multiple simultaneous offers. According to Harvard Business Review, the average time to hire an executive has increased by 40% in the last decade. 

What is the conclusion of all this? 

The challenge of finding managers lies not only in the shortage of talent, but in a combination of factors that have transformed the market. Companies that want to be able to attract the best leaders must, among other things: urgently adapt their recruitment strategies, work more deeply on their compensation and benefits policies and review their succession and internal development plans. 

Organizations that act today will be ensuring their leadership and competitiveness in tomorrow’s marketplace.